5 Jun 2015
GBP/USD weakens moderately to 1.5350
FXStreet (Mumbai) - The GBP/USD pair was offered at the high of 1.5368 in the Asian session, post which it fell into moderate losses to trade at 1.5350 levels.
USD strengthens as yields tick higher
The USD is being bid higher ahead of the European session on signs of strength in the US Treasury yields. The benchmark 10-year yield ticked higher to 1.6 basis points to 2.232%. The yield spread had favored the British Pound in the previous session after the IMF asked the US fed to delay its rate hike to early 2015.
It remains to be seen if the USD is able to maintain its bid tone after the UK Gilt yields begin trading. Investors also await the US non-farm payrolls report in the US, which could have implications on the timing of interest rate hike in the US.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5371 (200-DMA), above which the gains could be extended to 1.5439. On the flip side, a break below 1.5336 (38.2% Fib R of 1.4564-1.5813), could push the pair down to 1.53.
USD strengthens as yields tick higher
The USD is being bid higher ahead of the European session on signs of strength in the US Treasury yields. The benchmark 10-year yield ticked higher to 1.6 basis points to 2.232%. The yield spread had favored the British Pound in the previous session after the IMF asked the US fed to delay its rate hike to early 2015.
It remains to be seen if the USD is able to maintain its bid tone after the UK Gilt yields begin trading. Investors also await the US non-farm payrolls report in the US, which could have implications on the timing of interest rate hike in the US.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5371 (200-DMA), above which the gains could be extended to 1.5439. On the flip side, a break below 1.5336 (38.2% Fib R of 1.4564-1.5813), could push the pair down to 1.53.